Chinese shares open higher on Xiongan New Area

BEIJING, April 5 (Xinhua) -- Chinese shares rallied Wednesday partly driven by shares related to Xiongan New Area, a new economic zone to be built near Beijing.

The benchmark Shanghai Composite Index went up 0.41 percent at 3,235.66 points at opening, reversing bearish performance before the three-day tomb-sweeping holiday.

The smaller Shenzhen Component Index opened 0.65 percent higher at 10,496.78 points. The ChiNext Index, China's NASDAQ-style board of growth enterprises, was up 0.4 percent to open at 1,914.91 points.

The strong indices came after central authorities announced the establishment of the new area on Saturday, which is a "major historic and strategic choice" that would be "crucial for the millennium to come."

Analysts believe Xiongan, some 100 kilometers southwest of downtown Beijing and now only covering three lesser-developed counties, will create fresh business opportunities and help the capital city share its prosperity with surrounding areas.

More than 20 shares related to the new national strategy, mainly in sectors including property, cement, steel and construction, surged by the daily limit immediately after opening.

Shares in China Fortune Land Development, a property developer that had reportedly signed development agreements in the area, jumped 10.01 percent to 29.99 yuan per share.

Tangshan Jidong Cement, a major cement producer in Hebei, and BBMG Corp., a conglomerate in property development, construction and furniture, also saw rapid share price increases.

The new area is part of a more ambitious plan to jointly develop Beijing, Tianjin and Hebei to improve the region's economic development, environment and public services, and bridge the gap between the capital and areas surrounding it.